This document is an assembly bill that allows farmers' markets and certified farmers' markets to accept electronic benefit transfers (EBT) for food assistance programs. It allows an authorized group of produce sellers within a market to operate an EBT acceptance system on behalf of its members. Individual produce sellers are also allowed to operate their own EBT acceptance activities. The bill does not require markets themselves to create or maintain an EBT system.

1. Assembly Bill No. 537
CHAPTER 435
An act to add Section 10072.1 to the Welfare and Institutions Code,
relating to public benefits.
[Approved by Governor September 29, 2010. Filed with
Secretary of State September 29, 2010.]
legislative counsel’s digest
AB 537, Arambula. Farmers’ markets: electronic benefit transfers.
Existing law, administered by the State Department of Social Services,
provides for the establishment of a statewide electronic benefit transfer
(EBT) system for the purpose of providing financial and food assistance
benefits to needy Californians.
This bill would allow an interested collective group or association of
produce sellers that is Food and Nutrition Service (FNS) authorized and in
a flea market, farmers’ market, or certified farmers’ market to initiate and
operate an EBT acceptance system in the market, as specified. The bill
would provide that an individual produce seller in a market is not prohibited
from operating his or her own individual EBT acceptance activity as part
of that seller’s personal business customer transaction offering.
The people of the State of California do enact as follows:
SECTION 1. Section 10072.1 is added to the Welfare and Institutions
Code, to read:
10072.1. (a) The Legislature finds and declares that flea markets,
farmers’ markets, and certified farmers’ markets are important sources of
low-cost produce for Californians in need of food assistance.
(b) (1) An interested collective group or association of produce sellers
that is Food and Nutrition Service (FNS) authorized and actively
participating in produce sales in a market described in subdivision (a) may
initiate and operate an electronic benefit transfer (EBT) acceptance system
on behalf of its members, to the extent and manner allowed by federal law
and regulation. The market operator shall allow and accommodate the
FNS-authorized group or association in a reasonable manner that aids in
the creation, implementation, and operation of its EBT acceptance system.
The allowance and accommodation by the market operator mandated by
this section is limited solely to the activity of the operation of the EBT
acceptance system by the group or association. No other activities are
authorized without the express permission of the market operator.
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2. Ch. 435 —2—
(2) This subdivision shall not apply to a market described in subdivision
(a) that currently or subsequently operates an EBT acceptance system.
(c) Nothing in this section or any other provision of law shall prohibit
an individually FNS-authorized produce seller in a market described in
subdivision (a) from operating his or her own individual EBT acceptance
activity as part of that seller’s personal business customer transaction
offering.
(d) Nothing in this section shall be interpreted to require a market
described in subdivision (a) to itself create, operate, or maintain an EBT
acceptance system on behalf of its produce sellers.
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